2013-2017, Decline in Retail Issuer Sales Growth

The rise of online shopping and intense competition have caused a downward trend in retail issuer sales growth over the past five years. Further compounded by declining consumer purchasing power, several retail companies reported sales declines in 2017.

Based on published financial reports processed by Katadata, 10 retail sector issuers showed a slowdown in sales/revenue growth in 2017 compared to 2013. The sharpest decline in sales growth was recorded by PT Electronic City Indonesia Tbk (ECII), falling more than 3,100 basis points (bps) to just 9.55% in 2017 from 40.69% in 2013.

Meanwhile, PT Ace Hardware Indonesia Tbk (ACES) experienced the lowest decline in sales growth, a mere 53 bps to 20.31% from 20.85% in 2013. Three retail issuers, namely PT Ramayana Lestari Tbk (RALS), PT Hero Supermarket Tbk, and PT Matahari Putra Prima Tbk (LPPF), even saw a decrease in sales last year compared to the previous year. Total sales of the 10 retail issuers below grew only 6.41% in 2017 from the previous year, compared to over 21% growth in 2013.

(Read Databoks: What is the Value of Indonesian Retail Sales?)